WTI Pops Despite Biggest Cushing Inventory Build Since 2008

With OPEC behind us, perhaps the market's focus will swing back to fundamentals (as opposed to headlines) and following last week's huge build across products, API reported the second week in a row of crude inventory draws (bigger than the expected 1.37mm drop). However, Gasoline and Distillates saw major builds but Cushing inventories rose over 4mm barrels - the most since 2008. WTI seemed to focus on the crude draw at first...

 

API

  • Crude -2.21mm (-1.37mm exp)
  • Cushing +4.01mm (+2.87mm exp)
  • Gasoline +828k (+1.59mm exp)
  • Distillates +4.08mm(+1.24mm exp)

A second week of bigger than expected draws in crude inventories but Cushing saw the biggest weekly build since 2008...

 

The kneejerk reaction was a jump higher in WTI...